A moving average is a rolling series of arithmetic averages which acts as a smoothing mechanism to indicate trends in historic data. In financial markets, that historic data is most likely to be prices or returns. In this video, Abdulla discusses this concept and specifically explains the simple or arithmetic moving average. He covers what it is, how it is calculated, why people use it and some of its limitations.

Overview

The arithmetic moving average is easy to calculate and often used to show trends of previous data such as historic share price.

Key learning objectives:

Understand the calculation and practical use of the arithmetic moving average

Summary

Expert### Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

05:39

05:38

03:58

04:56

04:34

04:40

05:42

04:41

04:16

07:58

05:14

Introduction to Options, Pricing and Use Cases

Peter Eisenhardt • 13:18